The AUD to FJD exchange rate is currently bearish, reflecting recent weakness in the Australian dollar.
Key drivers include the interest rate outlook where the Reserve Bank of Australia is discussing potential rate hikes in the future, which could support the AUD. However, recent disappointing inflation data from China has raised concerns about reduced demand for Australian exports, further impacting the currency. Additionally, Fijian economic growth has been revised upward, which is positive for the FJD.
Expect the exchange rate to trade in a range that reflects current levels, above its three-month average. Upside risks for the AUD may stem from stronger-than-expected domestic economic data, while downside risks could arise from continued weakness in Chinese economic indicators or heightened geopolitical tensions that negatively affect investor sentiment towards the AUD.